Threats of jail time as royal commission unfolds

In a week that has seen both major and second-tier banks come unstuck for their non-compliance and product pushing, federal Treasurer Scott Morrison has warned that jail time could be on the cards for some.

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry heard that AMP has provided at least 20 false and misleading statements to ASIC in various breach reports over seven years.

Mr Morrison described AMP’s admission of lying to ASIC as “deeply disturbing” and reminded them such conduct could result in imprisonment.

“What has occurred here and what has been admitted to in the royal commission by AMP is deeply disturbing,” Mr Morrison said in a statement issued yesterday.

“They have said that they basically charged people for services they didn't provide and they have admitted to statements that were misleading to ASIC and to their own customers, and this is deeply distressing.

“This type of behaviour can attract penalties which include gaol time. That's how serious these things are.”

Notwithstanding the evidence, the treasurer also said that the corporate regulator has his confidence and is well equipped to monitor the financial services industry and enforce the existing legislation.

“We will allow the Commission to continue to do their work and ASIC will get on with their job of dealing with what are very serious admissions by AMP at the royal commission and they'll get on with that job immediately as they have already been doing,” he said.

Mr Morrison was one of a number of senior Coalition MPs who until recently opposed the royal commission.